Mori Hills REIT buys Tokyo office for $744m
Japanese developer Mori Building has sold its headquarters, the Ark Hills South Tower in Tokyo, for ¥76.6 billion, or ¥197,515 per square foot ($744.4 million/$1,919 per square foot). Mori Hills REIT was the buyer of the 387,820-square-foot, 20-story office.
The sale-leaseback acquisition was for a 25 percent partial interest while the seller retained the remaining interest.
The asset is part of a two-office property portfolio. Mori Hills REIT also acquired the second office, Roppongi Hills Mori Tower in Tokyo, for ¥9.89 billion or ¥236,854 per square foot ($96.1 million/$2,302 per square foot).
Tokyo office demand strengthened further during second quarter 2014, driven by the recovery in corporate earnings and business expansion, according to research by CBRE. Four new buildings were completed